Chinese Government Announces EV Policy: Made In China Means Money

Bertel Schmitt
by Bertel Schmitt

The Chinese government finally announced its long-awaited and much discussed subsidy program for the fledgling electric car industry. China will waive sales taxes on electric and fuel cell cars. There is only one limitation, which likely will make some Michigan Senators scream bloody murder: The cars must be made domestically in China.

Waiving the tax will lower the price of a car by 9 percent. According to China Daily, the Chinese government has more on offer to lure people away from fossil fuels:

“Buyers of locally made electric cars are also eligible for government subsidies of up to 120,000 yuan ($19,100) per vehicle. Imported models such as GM’s Chevy Volt are excluded from this policy.”

Importing an EV will remain legal, but it becomes silly: The imported car is slapped with a 25 percent customs duty. On top of that, sales tax, and no incentive. The domesticated EV will have no duty, no tax due, and the government will kick in big amounts of cash

That this policy would be like the above was presaged by moves of foreign joint venture partners of influential (i.e. government-owned) Chinese automakers. From GM to Nissan, all are making preparations for EV production in China.

According to China Daily,

“A total of 49 domestically made models, including the Sale electric car developed by SAIC’s car venture with General Motors and two electric cars made at Volkswagen’s two Chinese car ventures.”

I think they mean the Sail.

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4 of 8 comments
  • Tekdemon Tekdemon on Jan 11, 2012

    Most of our EVs are made here in the US anyways (at least notionally...even though the Coda is really preassembled mostly) and we do rather more favorably treat non-imports too, though not as explicitly.

  • Hogie roll Hogie roll on Jan 11, 2012

    So we'll be able to buy cheap Chinese EVs subsidized by the Chinese tax payer? Sure!

  • SCE to AUX SCE to AUX on Jan 11, 2012

    Domestic mfr protectionist policies by the commies? Those Michigan senators living in glass houses have nothing to scream about.

  • Daveainchina Daveainchina on Jan 12, 2012

    shouldn't the WTO have something to say about this?